Important information about Governmental Accounting

Amber City maintains a general fund, a capital projects fund, and a special revenue fund. During 2005, the City engaged in the following transactions.

Required: Record all transactions in both the appropriate fund journal and the governmental activities journal, as necessary. Be sure to clearly indicate the fund in which the entry is made.

a. The City sold bonds, face value $26 million, at par to finance the construction of a new city hall.
b. The City purchased two new police cars at a total cost of $50,000.
c. The City collected $8,000 in taxes dedicated for the eradication of noxious weeds.
d. The City spent $6,000 on pesticides for noxious weeds.
e. The City acquired a new tractor for $75,000. The City paid $20,000 in cash and signed a note that is due in three years.